Manatee sales tax increase is proposed

Monday

Mar 11, 2013 at 6:55 PM

Plan, which would be used for health care for the poor, would have to go to the voters

By KATY BERGEN

With the cost of providing health care to the county's poor and uninsured rising and a fund set up to cover those expenses running out, county leaders are considering a plan intended to provide quality care for those who cannot afford it and keep people out of emergency rooms.

The plan calls for a one-half percentage point increase in the sales tax to pay for a variety of health care services, ranging from primary care to addiction treatment. The tax increase must be approved by voters, and county commissioners today are expected to agree to put such a referendum on a June ballot.

Supporters of the tax increase say it is a crucial part of a larger plan to cut property taxes while also funding health care for the county's needy.

The tax would cover health care costs for a county that has relied on property taxes and diminishing funds generated from the 1984 sale of the then-public Manatee Memorial Hospital to cover $23 million of annual expenses.

Commissioners voted 5-2 in late February to consider the referendum, which County Administrator Ed Hunzeker said is an effort to shift health care costs away from county property owners and address a potential shortfall when hospital sale funds dry up in 2015.

“It's a unique opportunity to set the direction for who pays for this government for the next 20 years,” Hunzeker said. “Everybody pays a little, including the people who are the recipients of the health care.”

The plan, developed by the Manatee County Health Care Alliance, would prevent expensive emergency room visits by helping local medical services provide preventative and follow-up care for those without health care coverage.

Formed in the wake of a 2008 county health care survey, the Manatee Health Care Alliance was tasked with finding innovative and cost-effective ways to relieve overburdened emergency rooms and emphasize primary and mental health care.

The sales tax, which applies to all items under $5,000, will only support those deemed medically poor and indigent by the county.

It is also key to a three-part plan to reduce property taxes, a move Hunzeker said would make Manatee County more competitive for those that want to start businesses in the area. If all three components come together, then a person owning $150,000 of taxable property in one of Manatee County's cities would see a property tax reduction of $245, county Information Outreach Officer Nick Azzara said.

Those living in unincorporated areas would save $135.

'A perfect storm'

The plan also involves shifting patrol costs from the Sheriff's Office, which mostly responds to unincorporated areas, away from city residents and instituting franchise and storm-water fees.

Bringing the sales tax to voters has not had unanimous support. Commissioners Vanessa Baugh and Betsy Benac voted against the referendum last month.

Baugh said she had yet to see a plan that clearly outlined how funding would be used.

Benac questioned the decision to implement the sales tax before components of President Barack Obama's Affordable Care Act are implemented in 2014.

“It's somewhat of a perfect storm because we have this unknown with Obamacare,” Benac said at a February meeting. “We don't know how that's going to impact us. I like the idea of local control and getting things done, but we have a huge federal issue that we are going to be dealing with.”

Others said the uncertainty of federal plans is exactly why the county should move to make their own. The county takes $9 million annually from the hospital sale fund, which is certain to run dry by 2015.

“We've been hearing that this is a rush job, especially in light of the federal health care act that is coming up,” Azzara said. “But we know we have a $9 million hole coming up in 2015. To not address that is irresponsible.”

Hunzeker said it is likely the government will not follow through on funding promises or state officials will refuse to implement certain measures of the Affordable Care Act, such as expanding Medicaid.

“We are looking at property tax relief,” Hunzeker said. “Let's shift the payers and if the federal government comes along and takes care of some of the cost, then we will reduce the sales tax.”

If the sales tax referendum is approved today, commissioners will consider adding another referendum — tax breaks for new and expanding businesses — to the June special election ballot.